Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

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Samsung Electronics: Local Market's Bet on a Buyback

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Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>1P/Ord LONG/SHORT betting on a 1P-skewed buyback does not look very desirable. The Lee family's financial needs are short-term, so there is no need for a 1P-skewed buyback.</li>
<li>Given that the 1P discount rate has stabilized again, a strategy betting on the mean reversion does not seem very timely either.</li>
<li>We should look at the possibility that false expectations for a special year-end dividend will further deepen futures backwardation. This situation can lead to quite a juicy spot/futures spread opening.</li>
</ul>


1P/Ord LONG/SHORT betting on a 1P-skewed buyback does not look very desirable. The Lee family's financial needs are short-term, so there is no need for a 1P-skewed buyback.
Given that the 1P discount rate has stabilized again, a strategy betting on the mean reversion does not seem very timely either.
We should look at the possibility that false expectations for a special year-end dividend will further deepen futures backwardation. This situation can lead to quite a juicy spot/futures spread opening.


Samsung Electronics Pref Shares (005935 KS)

Trading Ideas on the Possibility of Samsung Electronics' Special Shareholder Returns